line item boilerplate -...

LINE ITEM AND BOILERPLATE SUMMARY

TRANSPORTATION

Fiscal Year 2017-18

Article XVII, Public Act 107 of 2017 House Bill 4323 as Enacted

William E. Hamilton, Senior Fiscal Analyst

Tumai Burris, Budget Assistant

Mary Ann Cleary, Director

September 2017

HOUSE FISCAL AGENCY GOVERNING COMMITTEE

Laura Cox Fred Durhal III

Tom Leonard Sam Singh

Dan Lauwers Christine Greig

MICHIGAN HOUSE OF REPRESENTATIVES APPROPRIATIONS COMMITTEE

Laura Cox, Chair Roger Victory

Rob VerHeulen, Vice-Chair Mary Whiteford

Chris Afendoulis Jeff Yaroch

Sue Allor Fred Durhal III, Minority Vice-Chair

John Bizon Tom Cochran

Tommy Brann Pam Faris

Edward Canfield, D.O. Jon Hoadley

Shane Hernandez Robert Kosowski

Larry Inman David LaGrand

Tim Kelly Kristy Pagan

Kimberly LaSata Ronnie Peterson

Steve Marino Yousef Rabhi

Aaron Miller Sylvia Santana

Dave Pagel Henry Yanez

Scott VanSingel

STATE OF MICHIGAN

HOUSE OF REPRESENTATIVES

HOUSE FISCAL AGENCY

MARY ANN CLEARY, DIRECTOR

P.O. BOX 30014 LANSING, MICHIGAN 48909-7514 PHONE: (517) 373-8080 FAX: (517) 373-5874

www.house.mi.gov/hfa

GOVERNING COMMITTEE

LAURA COX, CHAIR TOM LEONARD, VC

DAN LAUWERS

FRED DURHAL III, MVC SAM SINGH

CHRISTINE GREIG

September 2017 TO: Members of the Michigan House of Representatives The House Fiscal Agency has prepared a Line Item Summary for each of the FY 2017-18

appropriation acts. Each Summary contains line-by-line appropriation and revenue source detail,

and a brief explanation of each boilerplate section in the appropriation bill.

In this report, line item vetoes are presented in the following manner: appropriation amounts

shown in strikeout are those that appear in the enrolled bill; amounts shown directly below

strikeout amounts reflect the effect of the veto.

Line Item Summaries are available on the HFA website (www.house.mi.gov/hfa), or from Kathryn

Bateson, Administrative Assistant (373-8080 or [email protected]).

Mary Ann Cleary, Director

http://www.house.mi.gov/hfa

mailto:[email protected]

TABLE OF CONTENTS

REVENUE SOURCES ................................................................................................................ 1

MICHIGAN DEPARTMENT OF TRANSPORTATION ................................................................. 3

Debt Service .................................................................................................................... 4

Collection, Enforcement, and Other Agency Support Services ........................................ 6

Departmental Administration and Support ....................................................................... 9

Information Technology ................................................................................................. 12

Transportation Planning ................................................................................................ 13

Design and Engineering Services .................................................................................. 15

Highway Maintenance ................................................................................................... 19

Road and Bridge Programs ........................................................................................... 20

Blue Water Bridge ......................................................................................................... 22

Transportation Economic Development Fund ................................................................ 23

Aeronautics Services ..................................................................................................... 25

Public Transportation Services ...................................................................................... 26

Local Bus Transit ........................................................................................................... 27

Intercity Passenger and Freight ..................................................................................... 28

Public Transportation Development ............................................................................... 31

Capital Outlay (1) – Building and Facilities ..................................................................... 33

Capital Outlay (2) – Airport Improvement Programs ....................................................... 34

BOILERPLATE SECTION INFORMATION ............................................................................... 35

GLOSSARY

STATE BUDGET TERMS Line Item Specific funding amount in an appropriation bill which establishes spending authorization for a particular program or function. Boilerplate Specific language sections in an appropriation bill which direct, limit, or restrict line-item expenditures, express legislative intent, and/or require reports. Lapse Appropriated amounts that are unspent or unobligated at the end of a fiscal year; appropriations are automatically terminated at the end of a fiscal year unless otherwise provided by law. Work Project Account authorized through statutory process which allows appropriated spending authorization from one fiscal year to be utilized for expenditures in a succeeding fiscal year or years for a specific project or purpose. APPROPRIATIONS AND FUND SOURCES Appropriations Authority to expend funds for a particular purpose. An appropriation is not a mandate to spend.

Gross: Total of all applicable appropriations in an appropriation bill. Adjusted Gross: Net amount of gross appropriations after subtracting interdepartmental grants (IDGs) and intradepartmental transfers (IDTs).

Interdepartmental Grant (IDG) Revenue Funds received by one state department from another state department—usually for service(s) provided. Intradepartmental Transfer (IDT) Revenue Funds transferred from one appropriation unit to another within the same departmental budget. Federal Revenue Federal grant or match revenue; generally dedicated to specific programs or purposes. Local Revenue Revenue received from local units of government for state services.

Private Revenue Revenue from non-government entities: rents, royalties or interest payments, payments from hospitals or individuals, or gifts and bequests. State Restricted Revenue State revenue restricted by the State Constitution, state statute, or outside restriction that is available only for specified purposes; includes most fee revenue; at year-end, unused restricted revenue generally remains in the restricted fund. General Fund/General Purpose (GF/GP) Revenue Unrestricted general fund revenue available to fund basic state programs and other purposes determined by the Legislature; unused GF/GP revenue lapses to the General Fund at the end of a fiscal year. MAJOR STATE FUNDS General Fund The state's primary operating fund; receives state revenue not dedicated to another state fund. School Aid Fund (SAF) A restricted fund that serves as the primary state funding source for K-12 schools and Intermediate School Districts. Constitutionally, SAF revenue may also be used for postsecondary education. Budget Stabilization Fund The Countercyclical Economic and Budget Stabilization Fund (also known as the "rainy day fund"); the Management and Budget Act provides guidelines for making deposits into and withdrawals from the fund.

TRANSPORTATION PAGE 1 FY 2017-18 LINE ITEM AND BOILERPLATE SUMMARY HOUSE FISCAL AGENCY SEPTEMBER 2017

REVENUE SOURCES FOR TRANSPORTATION APPROPRIATIONS

FEDERAL REVENUE Federal surface transportation programs are established and defined in federal law. Provisions are codified in 23 U. S. Code (Highways) and 49 U. S. Code (Transportation). New programs are established and existing programs reauthorized through multi-year authorizing acts. The current authorization act, signed into law by President Obama on December 4, 2015, is titled Fixing America's Surface Transportation (FAST). The FAST Act authorized federal surface transportation programs, i.e. highway, transit, and rail passenger programs, for a 5 year period ending September 30, 2020. The FAST Act makes federal funds available to state departments of transportation through three U.S. Department of Transportation (DOT) agencies: Federal Highway Administration (FHWA), Federal Transit Administration (FTA), and Federal Railroad Administration (FRA). Federal revenue appropriated in the state transportation budget is based on estimates of available federal funding developed by the Michigan Department of Transportation (MDOT). In addition to federal aid for surface transportation programs, the federal government also provides support for aeronautics programs through Airport Improvement Program (AIP) grants. The AIP is established under 49 U. S. Code, Subtitle VII (Aviation Programs) and is administered by the Federal Aviation Administration (FAA). The current authorizing statute, the FAA Modernization and Reform Act of 2012 authorizes spending for FAA programs through September 30, 2015, and was extended through July 15, 2016. Public Law 114-90, enacted on July 15, 2016, extends the federal aviation programs through September 30, 2017. Estimated AIP revenue is appropriated in the Capital Outlay appropriations unit of the state transportation budget. These federal fund sources are shown in the appropriation act under the umbrella description "Federal aid – transportation programs."

STATE RESTRICTED REVENUE Article IX, Section 9 of the 1963 Michigan Constitution dedicates motor fuel taxes and motor vehicle registration taxes for transportation purposes. Public Act 51 of 1951 (Act 51) establishes the state's major surface transportation programs and allocates restricted transportation revenue to those programs through various state restricted funds.

MICHIGAN TRANSPORTATION FUND (MTF): Main collection/distribution fund for state restricted transportation revenue generated from motor fuel taxes and motor vehicle registration taxes. Act 51 establishes the MTF and provides for the formula distribution of MTF revenue among various programs/funds: to State Trunkline Fund (STF) for construction and maintenance of the state trunkline system and administration of the MDOT, to 83 county road commissions for county road systems, to 533 incorporated cities and villages for city/village streets, and to the Comprehensive Transportation Fund (CTF) for public transportation programs. Act 51 also allocates MTF revenue to various targeted or categorical programs (e. g., rail grade crossing account, rail grade surface program, Local Bridge Fund, Local Agency Wetland Mitigation Bank Fund, Movable Bridge Fund, Transportation Economic Development Fund) and directs the Legislature to appropriate funds for necessary expenses incurred in administration and enforcement of the Motor Fuel Tax Act, Motor Carrier Act, and vehicle registration sections of the Michigan Vehicle Code. The MTF does not carry a balance into the next fiscal year; all MTF revenue is distributed each year through the Act 51 formula. STATE TRUNKLINE FUND (STF): Established and governed by Act 51, the STF provides funding for maintenance and construction of the state trunkline highway system, and administration of the MDOT. Revenue is derived primarily from transfers from the MTF in accordance with the provisions of Act 51. COMPREHENSIVE TRANSPORTATION FUND (CTF): Established and governed by Act 51, the CTF is dedicated for public transportation purposes. The fund has two main sources of revenue: a 10% share of net MTF revenue (after various statutory deductions) and a share of motor vehicle-related sales tax revenue as provided in the General Sales Tax Act. STATE AERONAUTICS FUND (SAF): Dedicated to aviation development, safety regulation, and air service promotion under the State Aeronautics Code (1945 PA 327). The SAF receives revenue from aviation fuel and aircraft registration taxes established in the State Aeronautics Codes, revenue from an earmark of Airport Parking Tax revenue under the Airport Parking Tax Act (1987 PA 248), and revenue from charges for use of MDOT-owned aircraft, primarily by other state departments. In addition, beginning October 1, 2016 and each calendar quarter thereafter, the SAF will be credited with an amount equal to the collection of sales tax imposed at a rate of 2% attributable to retail sales of aviation fuel. This earmark was established through an amendment to the General Sales Tax Act (1933 PA 167), part of an aviation funding package (Public Acts 258 through 262 of 2015).

TRANSPORTATION SEPTEMBER 2017 HOUSE FISCAL AGENCY FY 2017-18 LINE ITEM AND BOILERPLATE SUMMARY

STATE RESTRICTED REVENUE (CONT.) BLUE WATER BRIDGE FUND (BWBF): Subsidiary of the STF created in FY 1993-94 to account for debt service, capital projects, maintenance, and operating costs of the Blue Water Bridge. Revenue is derived from bridge tolls and from the lease of plaza right-of-way by a duty-free store. ECONOMIC DEVELOPMENT FUND (EDF): Established by 1987 PA 231 to assist in funding highway, road, and street projects which support economic growth. Fund revenue is derived from Act 51 earmarks of MTF revenue, revenue from a 1987 increase in operator and chauffeur license fees, and interest on the fund balance. Also referenced as Transportation Economic Development Fund (TEDF). LOCAL BRIDGE FUND (LBF): Established by 2004 PA 384, an amendment to Act 51, to provide financial assistance to local highway authorities for the preservation, improvement, or reconstruction of existing bridges, or the construction of bridges to replace existing bridges, in whole or part. Fund revenue comes from two Act 51 earmarks of MTF revenue: an earmark of 1/2 cent of the motor fuel tax on gasoline tax (approximately $22.9 million in FY 2017-18), and a separate fixed amount of $5.0 million.


MICHIGAN DEPARTMENT OF TRANSPORTATION

The mission of the Michigan Department of Transportation (MDOT) is: "Providing the highest quality integrated transportation services for economic benefit and improved quality of life." Article V, Section 28 of the 1963 Michigan Constitution establishes the State Transportation Commission to "establish policy for the State Transportation Department transportation programs and facilities, and such other public works of the state, as provided by law." Article V, Section 28 also provides for the appointment of the Director of the State Transportation Department as the principal executive officer of the Department with responsibility for executing the policy of the State Transportation Commission. The powers and duties of the Department, the State Transportation Commission, and the Department Director are further defined in statute, 1964 PA 286. Public Act 51 of 1951 (Act 51) establishes and defines the major surface transportation programs and revenue sources identified in this appropriation summary. The State Aeronautics Code (1945 PA 327) governs aeronautics programs funded through these appropriations.

Full-time equated unclassified positions

6.0 Full-time equated (FTE) positions not in the state classified service.

Full-time equated classified positions

2,820.3 Full-time equated (FTE) positions in the state classified service. Note: based on 2,088 hours for 1.0 FTE position.

GROSS APPROPRIATION $4,347,443,000 Total of all applicable line item appropriations.

Total interdepartmental grant/intradepartmental transfer revenue

4,039,300 Revenue received from other departments or transferred within the department.

ADJUSTED GROSS APPROPRIATIONS

$4,343,403,700 Gross appropriation less (or minus) interdepartmental grant (IDG) and intradepartmental transfer (IDT) revenue.

Federal aid – transportation programs

1,340,301,200 Revenue received from federal departments and agencies.

Local revenues 50,532,000 Revenue received from local units of government.

Private revenues 100,000 Revenue received from private individuals and entities.

Total other state restricted revenues

2,952,470,500 State revenue dedicated to a specific fund (other than the General Fund) or restricted for a specific purpose.

STATE GENERAL FUND/ GENERAL PURPOSE

$0 Unrestricted state revenue from taxes and other sources.


SECTION 102: DEBT SERVICE

Public Act 51 of 1951 gives the State Transportation Commission authority to borrow money and issue bonds or notes for transportation purposes, the debt service on which shall not exceed 50% of the dedicated taxes received for transportation purposes in the prior fiscal year. As of September 30, 2016, outstanding bonded debt totaled $1,578.1 million.

Airport safety and protection plan

$4,617,000 Debt service related to CTF bonds issued for airport improvement and security projects.

Funding Source(s): Restricted 4,617,000

Related Boilerplate Section(s): None

Blue water bridge fund 7,105,100 Principal and interest payments for 1996 and 2011 bonds used to finance Blue Water Bridge projects.



Comprehensive transportation

18,244,500 Principal and interest payments on CTF bonds issued for public transportation purposes.



Economic development 11,548,300 Principal and interest payments on various TEDF bond programs, including bonds issued to fund category "A" and "B" road projects (1989), Build Michigan III economic development projects (2001), and various refunding bonds.



Local bridge fund 2,315,400 Act 51 distribution from the MTF for debt service on 1992 bonds issued to finance local agency bridge projects.



State trunkline 185,109,100 Principal and interest payments on various debt issues, the proceeds of which were used for state trunkline preservation or capacity improvement projects, or for refunding prior debt issues. Federal funds used in this line item reflect debt service related to federal grant anticipation revenue vehicle (GARVEE) bonds. Restricted revenue appropriated in this line includes $7.1 million from the fund source "IRS debt service rebate" associated with Build America Bonds issued by the department in 2009, and $140.3 million from the STF.

Funding Source(s): Federal 37,783,300 Restricted 147,325,800


GROSS APPROPRIATION $228,939,400 Total of all applicable line item appropriations.


37,783,300 Federal funds pledged by MDOT for debt service on federal revenue anticipation (GARVEE) notes and bonds.


Blue Water Bridge fund 7,105,100 Subsidiary fund of STF used to account for debt service, capital projects, maintenance, and operating costs of Blue Water Bridge.

Comprehensive transportation fund (CTF)

18,244,500 State restricted fund dedicated for public transportation purposes.

Economic development fund (EDF)

11,548,300 Fund established by 1987 PA 231 to help fund highway, road, and street projects that support economic growth.

IRS debt service rebate 7,004,300 Debt service rebate related to 2009 Build America Bond issue. [This is really a federal revenue source but is shown as state restricted revenue in the budget bill.]

Local bridge fund 2,315,400 Established by 2004 PA 384, an amendment to Act 51.

State aeronautics fund (SAF)

4,617,000 State restricted fund dedicated for aviation development, regulation, and promotion.

State trunkline fund (STF) 140,321,500 State restricted fund dedicated for state trunkline programs.




SECTION 103: COLLECTION, ENFORCEMENT, AND OTHER AGENCY SUPPORT SERVICES

This appropriation unit provides reimbursement to other state departments for services provided to state transportation funds and programs under terms of contracts with MDOT. Services provided by other state departments include collection of state-restricted transportation revenue. Article IX, Section 9 of the 1963 Michigan Constitution dedicates motor fuel taxes and motor vehicle registration taxes for transportation purposes, after payment of necessary collection expenses. MTF grants to other state departments are governed by provisions of Act 51. In addition to the line item appropriations shown below, Section 807 of the General Government budget (Article VIII of 2017 PA 107) authorizes the Department of Technology, Management and Budget (DTMB) to assess transportation funds a proportionate share of MAIN accounting system costs.

CTF grant to civil service commission

$200,000 Civil service administrative expenses for MDOT, based on constitutionally mandated charge of not less than 1% of related payroll.

Funding Source(s): Restricted 200,000

Related Boilerplate Section(s): 306

CTF grant to department of attorney general

205,000 Legal services and litigation costs of the Attorney General in support of transportation programs.



CTF grant to department of treasury

12,700 Investment activity costs attributable to CTF funds managed by the Department of Treasury.



CTF grant to legislative auditor general

39,000 Audit costs attributable to transportation programs and funds.



CTF grant to department of technology, management, and budget

45,500 Accounting, budget, payroll, purchasing, and mail services from DTMB attributable to the CTF.



MTF grant to department of environmental quality

1,345,900 Supports Department of Environmental Quality, Land and Water Management Division environmental clearance activities for state and local road and bridge construction projects.



MTF grant to department of treasury

2,701,700 Costs attributable to collection of motor fuel taxes.




MTF grant to legislative auditor general




MTF grant to department of state for collection of revenue and fees

20,000,000 Costs attributable to collection of transportation revenue from vehicle title and registration taxes processed by the Department of State. Grant limited to $20.0 million by Act 51, as amended by 2003 PA 151.



SAF grant to civil service commission

150,000 Civil service administrative expenses for MDOT, based on constitutionally mandated charge of not less than 1% of related payroll.



SAF grant to department of attorney general

179,400 Legal services and litigation costs of the Attorney General in support of transportation programs.



SAF grant to department of treasury

73,400 Investment activity costs attributable to SAF funds managed by the Department of Treasury.



SAF grant to legislative auditor general




SAF grant to department of technology, management, and budget

34,600 Accounting, budget, payroll, purchasing, and mail services from DTMB attributable to the SAF.



STF grant to civil service commission

5,847,000 Civil service administrative expenses for MDOT, based on constitutionally mandated charge of not less than 1% of related payroll.



STF grant to department of attorney general

2,447,600 Legal services and litigation costs of the Attorney General in support of transportation programs.



STF grant to department of state police

11,697,900 Supports Michigan State Police, Commercial Vehicle [Motor Carrier] Enforcement, and the transportation portion of Criminal Justice Information Center.




STF grant to department of technology, management, and budget

1,199,300 Accounting, budget, payroll, purchasing, and mail services from DTMB attributable to the STF.



STF grant to department of treasury

169,800 Investment activity costs attributable to STF funds managed by the Department of Treasury.



STF grant to legislative auditor general






502,200 State restricted fund dedicated for public transportation purposes.

Michigan transportation fund (MTF)

24,363,400 Primary collection/distribution fund for state transportation revenue from motor fuel taxes and vehicle registration taxes.


467,700 State restricted fund dedicated for aviation development, regulation, and promotion.





SECTION 104: DEPARTMENTAL ADMINISTRATION AND SUPPORT

This appropriation unit authorizes six unclassified FTE positions within the department including the Department Director. The unit also provides funding for Transportation Asset Management Council, Business Support Services, Office of Commission Audits, Economic Development and Enhancement Programs, Financial Services, Property Management, and Workers Compensation.

Full-time equated unclassified positions

6.0 Full-time equated (FTE) positions not in the state classified service.


252.3 Full-time equated (FTE) positions in the state classified service.

Unclassified salaries – 6.0 FTE positions

$776,600 Provides spending authority for salaries of six unclassified FTE positions, of which, four positions are currently filled: Department Director, Office of Communications Director, Office of Governmental Affairs Director and State Transportation Commission Advisor (currently a combined position), and Senior Policy and Legislative Advisor.



Asset management council 1,876,400 Provides data collection and related support for Asset Management Council established by 2002 PA 499. Staff support is provided from Transportation Planning appropriation unit.



Business support services – 42.0 FTE positions

6,595,600 Salaries, benefits, and other costs of Executive Office support staff, Office of Communications (including mapping and media services), Office of Governmental Affairs, and Chief Administrative Officer.



Commission audit – 29.3 FTE positions

3,367,500 Office of Commission Audits (OCA) was established by Section 17a of Act 51 to conduct financial and performance audits. OCA also provides management advisory services to the department. The Commission Auditor is appointed by and serves at the pleasure of the State Transportation Commission.



Economic development and enhancement programs – 10.0 FTE positions

1,643,500 Salaries, benefits, and other operating costs of the Office of Economic Development which administers Transportation Economic Development Fund (TEDF) programs, State Infrastructure Bank, federal Transportation Alternative Program (TAP), and Safe Routes to School programs. Appropriations for TEDF, TAP, and Safe Routes to School grants are in other appropriation units.




Finance, contracts, and support services programs – 171.0 FTE positions

21,418,200 Financial Operations Division provides budgetary and accounting control for all MDOT financial operations including preparation of financial reports/statements, project accounting, accounts payable/receivable functions. Financial Outreach Services Unit calculates, monitors, and reports on MTF monies distributed to local units of government. Office Services Section within this division provides engineering and other document reproduction, facilities management, and mail room support. Contract Services Division manages the overall service and construction contracting process including bid lettings, contract awards, consultant and contractor payments, prequalification, and contract monitoring. CSD also manages the statewide purchasing activities for the department. Accounting Service Division (Accounting Service Center) provides accounting services to the Michigan Department of Agriculture and Rural Development (MDARD), the Michigan Department of Environmental Quality (MDEQ), the Michigan Department of Natural Resources (MDNR), as well as the Michigan Department of Transportation (MDOT). Responsibilities include accounts receivable, accounts payable, cashiering and credit card receipting functions. It also includes general ledger accounting and preparation of financial statements. These functions are housed within the Bureau of Finance and Administration.

Funding Source(s): IDG 4,039,300 Restricted 17,378,900

Related Boilerplate Section(s): 205, 206, 209, 211, 212, 213, 375, 381, 382, 396, 505

Property management 7,103,500 DMB property management charges for occupancy of state-owned buildings (Transportation Building, part of North Ottawa Building, Secondary Complex buildings for Photo Lab, Testing and Research, and Central Warehouse) and rent for privately owned land or buildings at locations across the state.



Worker's compensation 1,619,000 Estimated worker's compensation obligations.




IDG for accounting service center user chargers

4,039,300 Funds received from MDARD, MDEQ, and MDNR for costs associated with Accounting Service Center functions.

Comprehensive transportation fund


Economic development fund

380,400 Fund established by 1987 PA 231 to assist in funding highway, road, and street projects that support economic growth.


4,217,100 Primary collection/distribution fund for state transportation revenue from motor fuel taxes and vehicle registration taxes. Used to support Bureau of Finance contract letting and project accounting for local units of government and administration of Act 51-required MTF distribution to local units of government.


State aeronautics fund 702,400 State restricted fund dedicated to aviation development, regulation, and promotion.





SECTION 105: INFORMATION TECHNOLOGY

This appropriation unit gives MDOT authority to reimburse the Department of Technology, Management and Budget (DTMB) for information technology (IT) services and projects. In addition to the line item appropriations shown below, Section 807 of the General Government budget (Article VIII of 2017 PA 107) authorizes the Department of Technology, Management and Budget (DTMB) to assess transportation funds a proportionate share of MAIN accounting system costs.

Information technology services and projects

$33,465,900 Provides spending authority for MDOT to reimburse DTMB for IT services, projects, and IT inventory.

Funding Source(s): Federal 520,500 Restricted 32,945,400




520,500 Federal funds available for information technology applications.

Blue Water Bridge fund 55,300 Subsidiary fund of STF used for debt service, capital projects, maintenance, and operating costs of the Blue Water Bridge.


225,100 State restricted fund dedicated for public transportation purposes.


37,200 Fund established by 1987 PA 231 to assist in funding highway, road, and street projects that support economic growth.


294,300 Primary collection/distribution fund for state transportation revenue from motor fuel taxes and vehicle registration taxes.


175,600 State restricted fund dedicated to aviation development, regulation, and promotion.





SECTION 106: TRANSPORTATION PLANNING

The Bureau of Transportation Planning implements MDOT's ongoing planning process for transportation programs and projects. Investment recommendations are based on social, economic, user-demand, infrastructure condition, and financial resource factors. A number of planning activities are mandated by federal law governing federal-aid transportation programs.



Planning services – 137.0 FTE positions

$36,245,200 Supports Bureau of Transportation Planning activities carried out through three divisions: Asset Management and Policy Division, Statewide Transportation Planning Division, and Data Inventory and Integration Division. Asset Management and Policy Division provides assistance to the State Transportation Commission and department management in developing transportation policy. The Division also provides support for the Transportation Asset Management Council (TAMC); provides guidance to the TAMC regarding state and federal legislation that impact transportation asset management; coordinates the development of the federally required Transportation Asset Management Plan and State Freight Plan; coordinates implementation of federal performance measures; and provides education, training and planning for non-motorized transportation. Statewide Transportation Planning Division – Responsibilities include preparation of State Long Range Transportation Plan and State Transportation Improvement Program (STIP) in accordance with federal planning requirements, and preparation of the annual rolling Five-Year Transportation Program.

Administers development of the state trunkline capital outlay program; develops revenue estimates.

Administers statewide and metropolitan planning process.

Provides travel demand analysis; supports comprehensive passenger and freight transportation planning.

Data Inventory and Integration Division – responsible for administration of data management activities associated with the collection, retention, distribution, analysis, and reporting of MDOT's infrastructure to support decision making for MDOT, federal and local partners agencies, other state agencies, and the public. Information generated by the division is used to obtain and distribute funds, assist in decision making as input into Program Development, Design of Projects, and Asset Management. It is also provided for the Governor's Dashboard and the Director's Scorecard for asset monitoring. Functions include: Annual certification of 616 local agency Act-51 public road mileages and maps; annual reporting of overall system condition and use, through submittal of FHWA Highway Performance Monitoring System (HPMS) on all federal aid roads; Oversight of [continued on next page]


Planning services – 137.0 FTE positions (continued)

Planning and Asset data on five corporate repositories; Administration of two corporate systems (Transportation Data Management System and the Transportation Asset Management System); Operation of MDOT's enterprise Geographic Information Systems environment, Maintenance of the trunkline linear referencing, Coordination of planning and engineering staff and equipment for field operations, System monitoring, Pavement surface condition assessment, Roadway digital video imaging services; Detailed traffic/travel information collection; Annual collection of the Lane Mile Inventory; PASER Q/C for TAMC; and the Administration of Jurisdictional Transfer, Annexation and National Functional Classifications.


Related Boilerplate Section(s): 217, 307, 384, 385, 394

Grants to regional planning councils

488,800 Grants to regional planning agencies for data collection and analysis, public involvement, and coordination between agencies.





19,250,000 Federal funds designated for statewide planning activities; derived from 2% set-aside of certain federal-aid programs.


610,500 Restricted funds that support public transportation components of statewide transportation planning.


9,580,800 Primary collection/distribution fund for revenue from motor fuel and vehicle registration taxes. Used in this appropriations unit to support statewide planning activities.


15,000 Restricted funds that support aviation components of statewide transportation planning.





SECTION 107: DESIGN AND ENGINEERING SERVICES

This appropriation unit supports administration of state trunkline program development, delivery, and system operations, including development and delivery of the annual state trunkline capital construction program. The appropriation for capital road and bridge construction projects is made in a separate appropriation unit.


1,473.3 Full-time equated (FTE) positions in the state classified service.

Program development, delivery, and system operations – 1,473.3 FTE positions

$161,253,100 Supports Highway Operations functions, including administration (salary, benefits, and other operating costs) of state trunkline program development, delivery, and system operations. Functions related to the development and delivery of the annual state trunkline capital construction program are supported from this line. Highway Operations are under the direction of the department's Chief Operations Officer; functions are broadly organized under three bureaus, the Bureau of Development, the Bureau of Field Services, and the Bureau of Bridges and Structures. Two administrative units, the Office of Business Development, and the Office of Operations Administrative Services, report directly to the Chief Operations Officer. Highway Operations activities are carried out from Lansing Central Office, at seven MDOT Regions, and at Transportation Service Centers (TSCs) within Regions. Program functions and activities within Highway Operations include: Program Development, and Delivery Planning – assists in development of the State Long Range Transportation Plan (SLRTP), the Transportation Improvement Program (TIP), and State Transportation Improvement Program (STIP). Project Environmental – manages environmental clearance process for proposed projects to insure compliance with state and federal requirements; identifies ways to mitigate project impacts; manages environmental consultant contracts; conducts hydrological analysis related to trunkline crossings of waterways and drainage; coordinates with DEQ for environmental permitting related to construction projects. Surveys – provides statewide survey coordination; administers consultant survey contracts; provides photogrammetry and mapping services. Utility Coordination and Clearance – coordinates use of MDOT right of way by utilities, including relocation of utility facilities when necessary; coordinates relocation and design of municipal utilities such as water mains, sewers, lighting. Real Estate Services – manages MDOT property (right-of-way); functions include including appraisal, acquisition, and sale of excess property in accordance with state and federal regulations. [continued on next page]


Program development, delivery, and system operations – 1,473.3 FTE positions (continued)

Design – responsible for preparation of project documents (plans, specifications, estimates) used as the basis for bid letting and project construction. Provides assurance that project plans and proposals are prepared and delivered in accordance with FHWA, AASHTO, and MDOT standards and contracting practices. Maintains the department's Design Standard Plans and Guidelines, and Design Package Evaluation (DPE) systems. Design engineering work is performed by both department staff and contract consulting engineering firms under the supervision of MDOT engineering staff. Construction – provides construction engineering and inspection of construction project work; construction contract administration including management of contractor payments; development of standard specifications for highway construction; evaluation of innovative technologies; technical support to Disadvantaged Business Enterprise (DBE) firms. Construction engineering work is performed by both department staff and contract consulting engineering firms under the supervision of MDOT engineering staff. Geotechnical – provides engineering, design, and analysis related to the physical properties affecting buildability and stability of structures, including subsurface investigation; foundation design and analysis, soils testing and classification; grading and drainage design and engineering; soil and sedimentation control. Materials Management – develops procedures and guidelines for materials sampling, testing, and control; develops and implements quality control/ quality assurance (QC/QC) plans for testing and acceptance of construction materials; manages research projects; recommends changes in Specifications. Pavement Management – develops pavement design standards; pavement condition analysis; pavement investigations; Life Cycle Cost Analysis; pavement design for projects; remaining service life reviews. Project Maintenance of Traffic – provides traffic coordination between MDOT projects, and between MDOT projects and local projects; develops traffic management plans and maintaining traffic plans. Bridge Program Management and Inspection – manages statewide bridge inspection program; maintains Bridge Management System; develops state trunkline bridge program strategies; performs scoping for bridge projects. Program Coordination – coordinates annual program call for projects, coordinates Region investments in Capital Preventive Maintenance, rehabilitation, reconstruction, and capacity improvements. Bridge Design – develops contract documents for bridge projects; manages bridge consultant design contracts. [continued on next page]


Program development, delivery, and system operations – 1,473.3 FTE positions (continued)

Systems Operations and Maintenance Traffic Safety and Operations – responsible for signal operations, sign operations, pavement marking, work zone safety, incident management, traffic safety, and congestion mitigation. Coordinates payment of freeway lighting and traffic signal utility billings.

Intelligent Transportation Systems (ITS) – operations include Southeast Michigan Transportation Operations Center (SEMTOC) in Detroit, West Michigan Transportation Operations Center (WMTOC) in Grand Rapids, and the Statewide Traffic Operations Center (STOC) in Lansing. Coordinates connected vehicle research.

System Environmental – identifies social, economic, and environmental impacts of projects for use in planning documents; implements wetland mitigation site corrective action program; coordinates with DEQ.

Permits – manages department use of department right of way and facilities through permitting functions including construction, billboard, and oversize/overweight vehicle permits.

Business Service in Support of Highway Operations Research Administration – coordinates the department's research program, including various research initiatives in cooperation with national industry groups such as the American Association of State Highway and Transportation Officials (AASHTO), the Transportation Research Board (TRB), the National Cooperative Highway Research Program (NCHRP) and U. S. Department of Transportation's University Transportation Centers (UTCs) program. Many research projects are supported with FHWA State Planning and Research grants. Research administration also provides research library services.

Local Agency Programs – administers federal aid programs on behalf of local road agencies; ensures that local federal aid projects have environmental clearance and are in compliance with federal-aid program requirements; provides oversight for the Local Bridge Program; administers Local Safety Program. Assists local road agencies in programming Transportation Economic Development projects.

Performance Management/Performance Excellence – provides system measurement tools and analysis; administers MDOT's employee training programs.

Office of Operations Administrative Services – manages department-owned facilities (offices, garages, labs, salt storage, sign shops) as well as the department-owned vehicle fleet (passenger vehicles, trucks, equipment); provides budgetary oversight for Highways Operations.

Office of Business Development – administers the department's Disadvantaged Business Enterprise (DBE) program.

Safety and Security Administration – provides emergency management coordination for disasters and emergency declarations. Coordinates with the Michigan State Police and other law enforcement agencies.

Attorney General – Transportation Division provides legal counsel to MDOT for construction contract issues, right-of-way condemnation, and environmental law; represents MDOT in tort litigation and actions to obtain reimbursement from motorists for damages to highway features.


Related Boilerplate Section(s): 357,375,376,382,394,601,612,660




23,529,800 Federal funds support research, materials, technology, and QA/QC program and assurance testing. Federal funds also support ITS and Safe Routes to Schools programs.

Comprehensive transportation fund

187,100 Restricted funds that support public transportation programs.


12,281,400 Primary collection/distribution fund for transportation revenue from motor fuel and vehicle registration taxes. Used in this appropriations unit to support engineering oversight, technical assistance, and coordination related to state and federal funds provided to counties, cities, and villages.

State aeronautics fund 160,300 Restricted funds that support aviation programs.





SECTION 108: HIGHWAY MAINTENANCE

This appropriation unit supports road and bridge maintenance activities on the state trunkline system. Also supports maintenance and operations of rest areas and Welcome Centers.



State trunkline operations – 793.7 FTE positions

$317,593,400 Salary, benefits, and other operating costs of MDOT's state trunkline maintenance program/activities performed by MDOT maintenance personnel from Lansing central office and seven MDOT regions. Department personnel also manage and coordinate work and reimbursements to those counties, municipalities, and private contractors who perform trunkline maintenance under contract with MDOT. Functions include: winter maintenance including deicer surface treatment, snow removal, and winter incident response; surface maintenance including joint and crack filling, remove and replace pavement, and pot hole repair; structure maintenance including bridge deck maintenance, superstructure and substructure maintenance, bridge drainage maintenance and repair, and emergency response to bridge hit incidents; sign and signal maintenance including sign fabrication, maintenance, and repair and signal maintenance and repair; shoulder and roadside maintenance including gravel and paved shoulders, road drainage inspection, maintenance, and repair, vegetation and brush control, litter pickup, and area and right-of-way mowing; guardrail maintenance and repair and trunkline system emergency response; fleet and facility operations, maintenance, and repair; and managing the Adopt-A-Highway program. Also supports rest area and Welcome Center operations and maintenance. There 74 rest areas. Of these 74 rest areas, 14 are also Welcome Centers.


Related Boilerplate Section(s): 319, 610


State trunkline fund (STF) 317,593,400 State restricted fund dedicated for state trunkline highway purposes.




SECTION 109: ROAD AND BRIDGE PROGRAMS

This appropriation unit includes spending authorization for the state trunkline capital construction/preservation program, the local federal aid program, and certain targeted/categorical programs established in Act 51. The distribution of MTF revenue to local road agencies as provided in Act 51 is also appropriated from this unit.

Cities and villages $491,162,500 Act 51 allocation of 21.8% of net MTF revenue. Appropriation is

based on estimated revenue. The actual distribution to cities and villages will be based on actual MTF revenue and Act 51 external formula. Distribution to specific cities and villages is governed by Act 51 internal formula (includes population, state trunkline mileage, major street mileage, and local street mileage factors).



County road commissions 880,938,200 Act 51 allocation of 39.1% of net MTF revenue. Appropriation is based on estimated revenue. The actual distribution to county road commission will be based on actual MTF revenue and Act 51 external formula. Distribution to specific county road commissions is governed by the Act 51 internal formula (includes urban, primary, and local road miles, vehicle registration tax receipts, and population factors).



Grants to local programs 33,000,000 Act 51 allocation to Local Program Fund; distributed 64.2% to county road commissions and 35.8% to cities and villages.



Local bridge program 28,282,900 Act 51 allocation used to repair or replace local bridges.



Local federal aid and road and bridge construction

278,400,300 Act 51 requires that an average of 25% of federal aid, excluding certain program categories, be allocated to local road agencies for eligible local road and bridge construction projects. This line is a placeholder representing the current year estimate of that allocation.

Funding Source(s): Federal 278,400,300

Related Boilerplate Section(s): 357, 382, 402

Local agency wetland mitigation bank fund

2,000,000 Recognizes Act 51 earmark for local wetland mitigation bank; established through Act 51 amendment, Public Act 246 of 2016.



Movable bridge 5,110,000 Recognizes Act 51 earmark for state and local movable bridges; established through Act 51 amendment, Public Act 246 of 2016.




Rail grade crossing 3,000,000 Act 51 allocation for rail grade crossing program; funds grade crossing safety enhancements, including crossing surface improvements on the state trunklines.



Rail grade crossing – surface improvements

3,000,000 Act 51 allocation for rail grade crossing surface improvement projects on the local road system; established in 2015 PA 175, an amendatory act part of the Road Funding Package enacted November, 2015, and effective January 1, 2017.



State trunkline federal aid and road and bridge construction

1,140,756,800 State trunkline capital road and bridge construction program.

Funding Source(s): Federal 783,367,300 Local 30,003,500 Restricted 327,386,000

Related Boilerplate Section(s): 307, 353, 395, 601, 612, 660

GROSS APPROPRIATION $2,865,650,700 Total of all applicable line item appropriations.


1,061,767,600 Federal-aid surface transportation funds provided for both state and local road agency capital construction programs from federal-aid programs established in 23 U. S. Code (Highways) as reauthorized and amended by Fast Act .

Local funds 30,003,500 City or village cost participation for opening, widening, or improving state trunkline highways as required by Act 51.

Blue water bridge fund 9,800,800 Subsidiary fund of STF used to account for debt service, capital projects, maintenance, and operating costs of Blue Water Bridge. Used in the State trunkline federal aid and road and bridge construction line item for Blue Water Bridge Plaza project.

Local bridge fund 28,282,900 Fund established by 2004 PA 384 which amended Act 51. Dedicated for local bridge program; revenue derived from two Act 51 MTF earmarks: 1/2 cent of the motor fuel tax on gasoline and a separate additional $5.0 million earmark.


1,418,210,700 Primary collection/distribution fund for state transportation revenue from motor fuel and vehicle registration taxes; allocated by Act 51 to Local Program Fund, rail grade crossing account, Local Bridge Fund, county road commissions, and cities and villages.





SECTION 110: BLUE WATER BRIDGE This appropriations unit, first recognized in the FY 1997-98 transportation budget, is used to account for operating and maintenance costs of the twin-span Blue Water Bridge. Capital construction/rehabilitation costs of the bridge and the Blue Water Bridge Plaza project are funded from the state trunkline road and bridge construction line item in the road and bridge programs appropriations unit.



Blue Water Bridge operations – 41.0 FTE positions

$6,471,400 Operating and maintenance costs for the twin-span Blue Water Bridge, which crosses the St. Clair River between Port Huron, Michigan and Sarnia, Ontario, Canada. [Administratively, Blue Water Bridge operations and maintenance functions are under the department's Bureau of Bridges and Structures.]




Blue water bridge fund (BWBF)

6,471,400 Subsidiary fund of STF used to account for debt service, capital projects, maintenance, and operating costs of Blue Water Bridge.




SECTION 111: TRANSPORTATION ECONOMIC DEVELOPMENT FUND

This fund was created by 1987 PA 231 (MCL 247.901) to assist funding highway, road, and street improvements in direct support of economic growth. Resources support five categories of improvements (A, C, D, E, F) related to either a specific type of economic activity or a specific type of transportation condition.

Forest roads $5,000,000 Category E (Forest Roads) receives $5.0 million statutory earmark to

facilitate safe/efficient transport of forest raw materials. Grant recipients are limited to county road commissions in counties that include a national lake shore, a national park, or in which 34% or more of the land area is commercial forest.



Rural county primary 7,779,800 Category D (Rural County Primary Roads) receives 25% of net TEDF balance after deducting administrative costs, debt service, and category E and F amounts. Funds are available to county, city, or village road agencies in counties with populations of 400,000 or less to enhance local primary road and major street systems that link communities to the state trunkline system; and are allocated to regional task forces based on proportion of rural primary road mileage included in each region. Rural task forces identify specific projects for funds in each region and submit project list to MDOT. Section 10(3) of Act 51 allocates 16.5% of the state's Equity Bonus federal-aid funds (highway construction funds formerly called Minimum Guarantee) to Category D. These federal funds are appropriated in boilerplate Section 503(3). However, Equity Bonus is no longer a federal-aid program category. The department allocates additional Surface Transportation Program funds to counties to offset the loss of these Equity Bonus funds.



Rural county urban system 2,500,000 Category F (Cities in Rural Counties) receives $2.5 million statutory earmark for urban areas (cities and villages with populations greater than 5,000) in rural counties (with populations of 400,000 or less). Projects must be for improvements to federal-aid-eligible roads and streets. Funds are available through competitive grant to eligible county, city, or village road agencies.




Target industries/economic redevelopment

19,059,500 Category A (Target Industries) receives a $3.5 million earmark of MTF revenue in Act 51, plus 50% of net TEDF balance after deducting administrative costs, debt service, and category E and F amounts. Category A is dedicated to capital road improvements related to economic development projects which create/retain permanent jobs in seven industries: agriculture and food processing, tourism, forestry, high technology research, mining, manufacturing, and office centers of not less than 50,000 square feet. Grants are competitively evaluated and may be awarded to any Act 51 eligible road agency (MDOT, county road commissions, cities, or villages). Program is administered jointly by MDOT's Office of Economic Development and the Michigan Economic Development Corporation (MEDC).



Urban county congestion 7,779,800 Category C (Urban County Congestion Relief) receives 25% of net TEDF balance after deducting administrative costs, debt service, and category E and F amounts. Funds are available to counties with populations greater than 400,000 (Wayne, Oakland, Macomb, Genesee, and Kent), allocated among qualified counties by population-based formula, and may be used for road or transit projects related to urban congestion relief or advanced traffic management systems; applications are reviewed by urban task forces. Section 10(3) of Act 51 allocates 15% of the state's Equity Bonus federal-aid funds (highway construction funds formerly called Minimum Guarantee) to Category C. These federal funds are appropriated in boilerplate Section 503(3). However, Equity Bonus is no longer a federal-aid program category. The department allocates additional Surface Transportation Program funds to counties to offset the loss of these Equity Bonus funds.





42,119,100 Established by 1987 PA 231 to help fund highway, road, and street projects that support economic growth; revenue is derived primarily from Act 51 earmarks of MTF revenue and through a statutory earmark of driver's license fee revenue.




SECTION 112: AERONAUTICS SERVICES

The State Aeronautics Code (Public Act 327 of 1945) gives the Michigan Aeronautics Commission general authority over aeronautics in the state. The Office of Aeronautics provides overall administration and direction for state aviation programs. Program activities include promoting development of commercial passenger and freight services; supporting construction and improvement of airport facilities; and providing aeronautical services, educational efforts, and regulatory activities to ensure safe and efficient aviation within the state. Aeronautics' Airport Improvement Program is funded in the Capital Outlay section of this act.



Air service program $250,000 Provides grant assistance to the state's 18 commercial air service airports with a focus on smaller commercial service airports. Air service program funds are expended on projects that are not eligible for federal Airport Improvement Program funding. Program has four grant categories: Air Carrier Recruitment and Retention, Capital Improvement and Equipment, and Airport Awareness, and Aircraft Rescue and Fire Fighting Training.



Aviation services – 48.0 FTE positions

7,596,100 The Office of Aeronautics is divided into three sections: Planning & Development; Programming; and Transport & Safety. Provides administrative services, fiscal coordination, and legislative liaison for aeronautics programs; administers all-weather airport access program; supports the Michigan Aeronautics Commission. Administers and provides project management for programming, planning, design, and construction of federal-aid and state-funded capital airport improvement projects. Airport Improvement Program projects are funded in the Capital Outlay section of this act. Provides aircraft, pilots, and maintenance services to support airport inspection, safety and education programs, and airport development programs, as well as provision of air transport services to state agencies and personnel.





7,846,100 Restricted fund for aviation development, regulation, and promotion; revenue from aviation fuel taxes and licensing/registration fees.




SECTION 113: PUBLIC TRANSPORTATION SERVICES

This appropriation unit provides administrative support for state public transportation programs. Grant programs are funded from other appropriations units.



Passenger transportation services – 36.0 FTE positions

$5,789,100 Administers local public transit, marine passenger, and intercity service programs. Implements intercity bus and limousine safety regulations.

Funding Source(s): Federal 972,100 Restricted 4,817,000




972,100 Federal transit funding from Title 49 USC as amended by the Fast Act.






SECTION 114: LOCAL BUS TRANSIT

This appropriation unit provides operating and capital assistance to local bus transit systems within the state.

Local bus operating $188,250,000 Statutory operating assistance to local transit systems for a portion of

eligible operating expenses. Act 51 provides reimbursement of up to 50% of eligible operating expense to transit systems in urbanized areas (population greater than 100,000) and up to 60% of eligible operating expense to transit systems in areas with populations of less than 100,000.



Nonurban operating/capital 28,027,900 Federal transit grant funding available to local transit systems in non-urbanized areas of state (under 50,000 in population). Funds can be used for operating or capital assistance; Michigan has used primarily for operating assistance.

Funding Source(s): Federal 26,027,900 Local 2,000,000




26,027,900 Federal transit grants for operating and capital assistance to nonurban transit systems authorized by Section 5311 of Title 49 USC as amended by the Fast Act.

Local funds 2,000,000 Local funding match for certain federal grants.


188,250,000 State restricted fund for public transportation purposes.




SECTION 115: INTERCITY PASSENGER AND FREIGHT

This appropriation unit provides funds for intercity bus service, rail passenger service, rail freight development, port development, and marine passenger programs. The Office of Rail within this appropriations unit also provides administrative support for state public transportation programs.



Detroit/Wayne county port authority

$200,000 Operating assistance to Detroit/Wayne County Port Authority; a local unit of government established under Public Act 639 of 1978.



Freight property management

1,000,000 Department currently owns rail property, including approximately 530 miles of track, acquired in the 1970s when private railroads abandoned a number of rail lines in Michigan. Four short line railroads operate on the state-owned track under contract with the department. This line item is used to pay additional trackage rights on certain non-state-owned segments in order to provide for the continuity of service on the state-owned lines. In addition, costs of certain property maintenance activities, including weed and brush removal, and culvert repair and replacement, as well as drainage assessments, are charged to the line. (Maintenance and rehabilitation costs of an additional 135 miles of track acquired from the Norfolk Southern railroad in December 2012 are charged to the Rail Operations and Infrastructure line item.)



Intercity services 8,060,000 Department contracts with an intercity carrier to provide intercity bus service to small urban and rural communities without other intercity public transportation services. Supports the intercity bus equipment program under which MDOT grants federal and state matching funds to intercity carriers for procurement of buses. Use of the buses is restricted to scheduled regular route services that originate in or are destined to points in Michigan, and which would otherwise be under-served by public transportation. Other projects which promote intermodal coordination may be considered.

Funding Source(s): Federal 4,500,000 Local 160,000 Restricted 3,400,000


Marine passenger service 400,000 Capital assistance for marine passenger systems. Eligible systems currently include the Eastern Upper Peninsula Transportation Authority (St. Mary's River ferry service), and the Beaver Island Transportation Authority (ferry service between Beaver Island and Charlevoix).




Office of rail – 39.0 FTE positions

6,483,400 Administers rail passenger, rail freight, rail economic development, and local grade crossing programs, including project management functions. Provides fiscal coordination and contract administration for Office of Rail and Office of Passenger Transportation.



Rail freight economic development

8,768,200 Supports capital improvements on state-owned rail facilities; also supports a rail-freight economic development program.



Rail operations and infrastructure

115,991,500 This line provides operating and capital support for rail passenger service on three lines in Michigan operated by Amtrak: the Blue Water (Port Huron to Chicago), the Pere Marquette (Grand Rapids to Chicago), and the Wolverine (Pontiac-Detroit-Chicago). The line also supports maintenance and capital investments on the state-owned Kalamazoo-Dearborn corridor.

Funding Source(s): Federal 60,100,000 Local 100,000 Private 100,000 Restricted 55,691,500




64,600,000 Federal aid for intercity services provided through Section 5311 of Title 49 USC as amended by the Fast Act; federal aid from Federal Railroad Administration supports capital costs of facilities, infrastructure, and equipment necessary to provide or improve high speed and intercity passenger rail service.

Local funds 260,000 Local funding match for certain federal grants.

Private funds 100,000 Revenue from private/non-governmental entities.


67,078,400 State restricted fund dedicated for public transportation purposes. Act 51 appropriates not less than 10% of appropriated CTF balance, after payment of debt service and administration, for intercity passenger and freight development.

Intercity bus equipment and facility fund

100,000 Revenue is generated primarily from facility maintenance charges under terms of the leases of state-owned intercity facilities; the fund is used as a fund source in the Intercity services line item.



2,036,000 Primary collection/distribution fund for transportation revenue from motor fuel and vehicle registration taxes, used in this appropriation unit to support statewide Railroad Safety, and Local Grade Crossing program within the Office of rail line item.

Rail freight fund 6,000,000 Sources of revenue include trackage rights, real estate activities (property sales/leases/permits), and contractual reimbursements and repayments. Used as a fund source for rail programs.


State trunkline fund (STF) 728,700 State restricted fund dedicated for state trunkline highway purposes, appropriated in the Office of rail line item.


SECTION 116: PUBLIC TRANSPORTATION DEVELOPMENT

This appropriation unit provides funds to enhance the effectiveness and availability of public transportation by supporting vehicle acquisitions, efficient local service delivery, and development of innovative public transportation programs and technologies.

Municipal credit program $2,000,000 Section 10l of Act 51 established the Municipal Credit program. As

amended by Public Act 391 of 2012, Section 10l directs that $2.0 million be returned from the distribution of local bus operating assistance made under Section 10e(4)(a) of Act 51 by each eligible authority organized or continued under the Regional Transit Authority Act (2012 PA 387) as a credit to those cities, villages, and townships within the authority. The section directs that the "return of money in terms of a credit" be based on population. In addition to the $2.0 million distribution under Section 10l, Section 10e(4)(c)(iv) of Act 51 directs that not less than $2.0 million in CTF revenue be appropriated for the program each year.



Service initiatives 3,389,200 Provides funds for transit-related research, training, development, demonstration, planning, and coordination, and technical projects.

Funding Source(s): Federal 1,650,000 Local 325,000 Restricted 1,414,200


Specialized services 17,938,900 Act 51 requires a minimum appropriation of $3,600,100 (CTF) for this line to support transit service primarily to the elderly and persons with disabilities. Federal spending authority represents a grant program, Enhanced mobility for seniors and persons with disabilities, authorized under Section 5310 of 49 U.S.C. Local funds represent local matching funds for the federal program.



Transit capital 59,403,500 Provides funds for capital equipment needs of local transit systems, specialized service providers, and commuter rail systems through a match of federal funds. Act 51 requires the CTF to provide 66.67% of non-federal match for federal capital grants, a minimum of $8.0 million.




Transportation to work 3,700,000 Supports transportation services which help remove transportation as a barrier to employment primarily for low-income individuals. State funds primarily used to match federal program funds appropriated in other line items – primarily Nonurban operating/capital.



Van pooling 195,000 Funds continuation of MichiVan vanpool services to qualified commuting groups in the state; used for vehicles and marketing.





26,850,000 Federal transit grants authorized by Title 49 USC as amended by the Fast Act.

Local funds 5,760,000 Local funding match for certain federal grants.


54,016,600 State restricted funds dedicated for public transportation purposes.




SECTION 117(1): CAPITAL OUTLAY BUILDINGS AND FACILITIES

This appropriation unit provides funds for state building and facility projects.

Salt storage buildings and containment control

$2,500,000 Provides funding for salt storage buildings and containment systems at counties that perform state trunkline maintenance work for MDOT under contract.



Special maintenance, remodeling, and additions

3,001,500 For various department-owned transportation facilities.








SECTION 117(2): CAPITAL OUTLAY AIRPORT IMPROVEMENT PROGRAMS

This appropriation unit authorizes the expenditure of federal Airport Improvement Program funds.

Airport safety, protection and improvement program

$93,943,000 Supports the federal Airport Improvement Program grants to eligible airports in the state.



Detroit Metropolitan Wayne County Airport

6,500,000 Earmark for Detroit Metropolitan Wayne County Airport and related fund source, the Qualified Airport Fund, established through amendment to the State Aeronautics Code in the aviation funding package (Public Acts 258 through 262 of 2015).





79,000,000 Federal aid from the Airport Improvement Program.

Local funds 12,508,500 Estimated local match for airport improvement programs.

Qualified airport fund 6,500,000 Earmark for Detroit Metropolitan Wayne County Airport and related fund source, the Qualified Airport Fund, established through amendment to the State Aeronautics Code in the aviation funding package (Public Acts 258 through 262 of 2015).


2,434,500 Restricted fund established in the State Aeronautics Code dedicated for aviation development, regulation, and promotion. SAF revenue derived from aviation fuel taxes and licensing/registration fees, as well as an earmark of Airport Parking Tax revenue. Provides part of the non-federal match for Airport Improvement Program grants.




BOILERPLATE SECTION INFORMATION

GENERAL SECTIONS

Sec. 201. State Spending From State Resources and Payments to Local Units of Government Identifies state spending from state resources and state resources to be paid to local units of government.

Sec. 202. Applicability of Management and Budget Act References the Management and Budget Act (1984 PA 431).

Sec. 203. Definitions Defines various terms and acronyms appearing in the article.

Sec. 204. Internet Reporting Requires the department to use the Internet to fulfill legislative reporting requirements.

Sec. 205. Buy American and Buy Michigan Prohibits the purchase of foreign goods or services if competitively priced and comparable quality American goods and services are available; requires that preference be given to Michigan businesses and to Michigan businesses owned and operated by veterans.

Sec. 206. Deprived and Depressed Communities Directs department director to take reasonable steps to insure that businesses in deprived and depressed communities compete for and perform contracts for services or supplies, or both; directs the department director to encourage department contractors to subcontract with certified businesses in deprived and depressed communities.

Sec. 207. Out-of-State Travel Provides for annual out-of-state travel report due January 1 of each year.

Sec. 208. Hire of Outside Legal Counsel Prohibits the department from hiring a person to provide legal services that are the responsibility of the Attorney General; exempts bond counsel or outside legal counsel authorized by the Attorney General.

Sec. 209. General Fund/General Purpose Lapse Report Requires the State Budget Office to prepare and transmit a report, by November 30, of estimated GF/GP lapses for department programs or program areas for the prior fiscal year.

Sec. 210. Contingency Appropriations Provides contingent spending authority of $200.0 million federal funds, $40.0 million state restricted funds, $1.0 million local funds, and $1.0 million, subject to legislative transfer process of Section 393(2) of the Management and Budget Act.

Sec. 211. Transparency Website Directs the department, in cooperation with DTMB, to maintain a searchable website accessible by the public at no cost that includes various appropriation, expenditure, procurement, and staffing information.

Sec. 212. Restricted Fund Balance Report Requires report on restricted fund revenues, expenditures, and estimated year-end balances; report due within 14 days of the release of the Executive budget recommendation.

Sec. 213. Key Metrics/Scorecard Website Requires the department to maintain, on a publicly accessible website, a "scorecard" that identifies, tracks, and regularly updates, key metrics used to monitor and improve the department's performance.

Sec. 214. Annual Legacy Costs Section identifies estimated department "legacy costs" for the fiscal year ending September 30, 2018 of $63.9 million, of which of pension related costs were $32.9 million and retiree health care costs $31.0 million.

Sec. 215. Communications with the Legislature Prohibits the department from taking disciplinary action against an employee for communicating with a member of the Legislature or legislative staff.

Sec. 217. Report on Federal Rule Changes

Requires the department to provide notice to the legislature of proposed federal rule changes related to the department that could require amendments to state law.



Sec. 270. Remanufactured Parts Indicates legislative intent with regard to use of remanufactured parts for repair and maintenance of state motor vehicle fleet.

DEPARTMENTAL SECTIONS

Sec. 301. Permit Fees/Bridge Tolls Provides for permit processing fees; provides process for raising bridge tolls.

Sec. 304. Confidentiality of Bid Documents Provides for confidentiality of highway project bid documents.

Sec. 305. Lease of Space in Public Transportation Property Subsection (1) requires lease of space in public transportation facilities at market rates; requires that revenue be used for property maintenance/improvements. Subsection (2) directs the department to charge transit agencies and intercity bus carriers the same rental rates when leasing similar space in state-owned intermodal facilities.

Sec. 306. Use of Transportation Funds by Other State Agencies/Biennial Audit Sets guidelines for use of transportation funds (interdepartmental grants) by other state agencies; requires report by each state department receiving funding from interdepartmental contract with the department to report on use of transportation funds no later than two months after the publication of the state Certified Annual Financial Report. Directs the Auditor General to use a "risk based" approach in developing an audit program for the of transportation funds.

Sec. 307. Rolling Five-Year Plan Requires MDOT to provide a rolling five-year highway construction plan by March 1 of each year.

Sec. 310. State Transportation Commission Minutes/Agenda Requires MDOT to provide copies of minutes and agenda to House and Senate Appropriations Subcommittees on Transportation, House and Senate Fiscal Agencies, and State Budget Director.

Sec. 313. State Infrastructure Bank Provides guidelines for State Infrastructure Bank program; provides carryforward authority; provides for a report, by December 1, 2017, on State Infrastructure Bank loans, activity, and fund balance.

Sec. 319. Rest Area Maintenance Requires signs/telephone numbers for reporting unclean and unsafe conditions at rest areas.

Sec. 353. Prompt Payment Directs MDOT to review contractor payment process to ensure that contractors and subs are paid promptly.

Sec. 357. Local Federal Aid Project Review Directs MDOT to complete project reviews within 120 days; requires system for monitoring review process.

Sec. 375. MDOT Open Houses and Groundbreaking Ceremonies Prohibits MDOT from reimbursing contractors or consultants for groundbreaking ceremonies, receptions, open houses, or press conferences related to transportation projects funded from appropriations made in Act.

Sec. 376. Studies of Outdoor Advertising and Motorist Behavior Prohibits MDOT from examining potential association of commercial signs, outdoor advertising, or billboards and motor vehicle activity or motorist behavior.

Sec. 381. E-Verify for Legal Status of Contractor/Subcontractor New Employees Requires the department to require, as a condition of each contract for construction, maintenance, or engineering services, the use of the E-Verify system to verify legal status of contractor and subcontractor new hires. Requires report by March 1 of each year.

Sec. 382. Require Department to Settle Local Agency Cost Sharing Agreements Requires the department to submit final bill to the local agency within two years of final payment to construction contractor. In his signing letter dated July 14, 2017, the Governor indicated he considers the section unenforceable.

Sec. 383. Report on Use of State Airfleet Requires annual report on use of MDOT-owned aircraft, specific to each aircraft, due February 1, 2017; restricts use by legislative employees; requires recovery of department costs.



Sec. 384. Detroit River International Crossing Restricts expenditures related to the project but also indicates that "an expenditure for staff resources used in connection with project activities, which expenditure is subject to full and prompt reimbursement from Canada, shall not be considered an expenditure of state transportation resources." In May 2015 international bridge which is the primary subject of this section was designated the Gordie Howe International Bridge.

Sec. 385. Detroit River International Crossing – Reporting Requirement

Requires a report on department activities related to all nonconstruction or construction planning activities related to the international crossing project which since May 2015 has been designated the Gordie Howe International Bridge. The section requires an initial report by December 1, 2016, and quarterly thereafter.

Sec. 393. Public Transportation Best Practices Directs the department to promote best practices in public transportation, including transit vehicle rehabilitation to reduce life-cycle cost.

Sec. 394. Priority of Preservation Directs the department and local road agencies to make preservation of the existing infrastructure a funding priority.

Sec. 395. Contingent Use of Capital Trunkline Funds for Maintenance Authorizes the use of up to $10.0 million from the capital road and bridge construction line for highway maintenance activities to support safety-related, high-priority, and other deferred routine maintenance needs on the state trunkline system.

Sec. 396. Solicitation of Proposals for Contractual Services Directs the department to obtain assurance that contractors can perform proposed services.

Sec. 397. Report on Work Project Balances/Federal Earmarks Requires the department to report on work project balances and unexpended federal earmarks. Report required by February 1, 2018.

Sec. 398. Towards Zero Deaths (TZD) Directs the department to continue to work to eliminate road fatalities and serious injuries; specifically directs the department to prioritize use of median cable guardrail.

FEDERAL

Sec. 402. Buyout of Local Federal Aid Authorizes local road agencies to enter into voluntary federal aid buyout agreements with MDOT or other local road agencies.

Sec. 403. Priority of Federal Transit Grants Directs the department, after meeting the capital needs of existing Section 5310 subrecipients, to apply for replacement buses for rural transit agencies to the maximum extent possible based on federal regulations. Section 5310 refers to Section 5310 of 49 U.S.C. which provides for formula grants to enhance mobility of seniors and persons with disabilities.

MICHIGAN TRANSPORTATION FUND

Sec. 501. Motor Carrier Act Describes distribution of revenue received under the Motor Carrier Act (1933 PA 254).

Sec. 503. TEDF/Local Bridge Fund Carryforward Provides carryforward authority for TEDF and Local Bridge funds; prohibits diversion for other purposes; authorizes use of federal, local, or private funds for program.

Sec. 504. MTF Distribution Requires use of MTF in accordance with Act 51 requirements.

STATE TRUNKLINE FUND

Sec. 601. Road Construction Warranties Directs the department to work with the road construction and engineering consultant community to develop a warranty program; defines considerations for warranty program; directs the department to timely inspect warranty projects; provides for a detailed report due March 1 of each year.



Sec. 604. State Trunkline Fund Carryforward Allows carryforward authority for STF; appropriates for state trunkline federal aid and road and bridge program.

Sec. 605. Flood Mitigation Directs the use of certain funds appropriated for state trunkline maintenance to support flood mitigation activities on limited access state trunklines in Wayne, Oakland, and Macomb counties; establishes specific performance measures.

Sec. 606. Project on I-94 between M-60 and Sargent Road in Jackson County

Indicates Legislative intent that the department spend between $2.0 million and $3.0 million on engineering and design work for a specific "rebuilding and modernization project." The section indicates that the engineering and design is to prepare the project for the receipt of future federal funds, if and when they become available.

Sec. 610. Removal of Dead Deer and other Large Animals Directs the department to have as a priority the removal of dead deer and other large animal remains from the travelled portion and shoulder of state highways.

Sec. 612. Incentive/Disincentive Contracts Requires MDOT to establish guidelines for use of incentive/disincentive contracts; requires report by January 1 of each year.

Sec. 613. Report on Engineering Costs Requires a report on department engineering costs related to federal-aid capital projects, including a breakout of department and consultant costs, and engineering as a percentage of construction costs.

Sec. 660. Use of Alternative Materials Encourages the department to examine the use of alternative road surface materials, including recycled materials. Provides for a report due by March 1 of each year.

Sec. 670. Rehabilitation of Winter Maintenance Trucks Directs the department to investigate costs of refurbishing winter maintenance trucks; requires a report on or before November 1, 2018.

TRANSIT AND RAIL RELATED FUNDS

Sec. 701. Intercity Bus Equipment and Facility Fund Provides for separate accounting and carryforward authority for this fund.

Sec. 702. Rail Freight Fund Provides for separate accounting and carryforward authority for this fund; reference to State Transportation Preservation Act of 1976 (1976 PA 295).

Sec. 703. Rail Abandonment Notice Requires that MDOT notify Legislature when railroad companies file for abandonment of lines.

Sec. 704. Rail Operations and Infrastructure Report Provides for a report on planned obligations for programs funded from the Rail operations and infrastructure line item; report due by February 1, 2018 with final report for FY 2017-18 due by November 1, 2018. The section requires a final report on FY 2016-17 by November 1, 2017.

Sec. 706. Detroit/Wayne County Port Authority Requires operational assessment and financial disclosure report due by June 30 of each year.

Sec. 711. Rail Passenger Service (Amtrak) Report Requires report, due May 1 of each year, on rail passenger service provided under contract by Amtrak.

Sec. 735. Street Railway Appropriation Provides for the appropriation of $0 to a street railway pursuant to section 10e(22) of 1951 PA 51.

Sec. 750. Rail Freight Economic Development Directs the department to spend not less than $2.5 million from the CTF appropriation in the Rail freight economic development line for freight economic development.



AERONAUTICS FUND

Sec. 801. State Aeronautics Fund Directs that unexpended funds in the State Aeronautics Fund lapse back to the fund.

Sec. 802. Department-Owned Airports States legislative intent that department find private or local owner/operator of department-owned airports.

Sec. 803. Third-party Management of MDOT Aircraft/Sale of One Airplane

Directs the department, not later than November 1, 2017, to request proposals for third party management of department aircraft. Requires the department to sell one of two Beechcraft King Air twin engine turbo-prop airplanes.

CAPITAL OUTLAY

Sec. 901. Aeronautics Capital Program Allows MDOT to contract for airport improvement projects on behalf of local airport owners; establishes local match requirement.

Sec. 903. Capital Outlay Carry Forward Provides carryforward authority for capital outlay appropriations in accordance with Section 248 of the Management and Budget Act.

P.O. Box 30014 Lansing, MI 48909-7514 (517) 373-8080

www.house.mi.gov/hfa